Property Purchase Process in Hungary
Property Purchase Process in Hungary

Property Purchase Process in Hungary

Property Purchase Process in Hungary: To purchase any type of property except arable land, a private person requires a permit from the local municipality’s district council, and any purchase of property in Budapest is subject to the support of the Administrative Office (AOB). No restrictions on the ownership of property by Hungarian legal entities apply.

Hungarian law requires that the purchase of real estate be concluded through a private contract countered by a lawyer. Non-Hungarian citizens are obliged to obtain the approval of the administrative office concerned to purchase the property as a private person. According to the rules, most foreigners should obtain a permit within 2-3 months.

Most lawyers recommend foreign nationals set up a company registered in Hungary to buy property. In this case, no permit is required. It is a fairly quick and easy process (1-2 days), and all expenses can be written off.

The stages of purchase are:

Once a property is selected, negotiate.

It is highly recommended that a lawyer/lawyer be employed for this. Note that this lawyer represents not only the buyer but also the seller, although the form pays for his services.

Title searches are usually included in the service lawyers offer, so check back. A structural and/or architectural survey of the apartment and building is recommended.

When there is an agreement between the buyer and seller, the lawyer will begin the process of obtaining local government approvaforof the purchase.

The title search and the valuation of the property are then set in motion.

When the title is declared clear of encumbrances, a draft purchase agreement is drafted by an attorney. This written agreement written by an attorney is necessary to validate the transfer of property.

A meeting is arranged between the seller, the buyer, and the lawyer, at which the contract is signed in the presence of the parties and a representative of the real estate office. Now the buyer is expected to hand over 10% of the agreed price as a down payment (deposit).

After signing the contract, the buyer will have to pay lawyer and agent fees. To be submitted to the competent land registry office within 30 days of signing the purchase contract.

Due to the permitting process, the purchase usually ends 60–90 days after signing the contract. The buyer should inform the seller immediately after obtaining permission to purchase from the administration office. Closing usually takes place within a week. The most important step is when the buyer and seller sign the closing statement, which is a declaration that the payment of the purchase price has been completed and transferred. Buyer manages.

Purchase process

Regarding permits to buy in Hungary, being EU citizens, there is no problem or permit needed to buy in Hungary. You can buy from a contract made by a lawyer. You sin, the (former) owner’s sin and the lawyer will take the rest. You can start the buying process in Hungary and even from home.

Unless you have the nationality for any one country in the European Union, buying as a foreigner is not a problem. Also, if you are a citizen of surrounding countries or in countries where (trade) relationship with Hungary is very well possible.

This second group is for countries like the UK, Swiss, Russia, Ukraine, Norway, etc., but also citizens coming from the USA, Canada, New Sealand, Australia, Israel, etc., and from India, China. . , Syria, Libya, Africa, etc. It can be even more complicated, but still possible.

Start the process

Once you happily decide to purchase a suitable property through us, a straightforward series of events will take place to make you a legal owner:

* We will agree on one mode of payment – bank transfer, cash, etc., and also decide whom to pay and when.

* A date is set for the seller to vacate the property.

20% of the value of the property in all should be deposited in our lawyer/lawyer’s bank account. This ensures that the property is held just for you.

* The seller signs one, which we will call unregistered – before the purchase agreement, which means that we reserve the property for you.

* You have 30 days, the balance has to be paid with the ‘all-in’ price. Failure to pay within 30 days means that you relinquish any rights over your deposit and property.

* All terms of the deposit will be explained to both buyer and seller. If the property is sold to a third party, the seller is at risk of paying double the deposit amount. Likewise, you must make the payment within the time.

They have a rule that if someone wants to buy Hungarian, they have the first purchase

It will (almost) never happen, but it would be nice to know.

This process can take 60 days, but after that, there are another 60 days, with a government committee to see if all the procedures are okay and a foreigner can buy, so 60 + 60 + some days. To pass all the processes + posting time, etc. will be about 7,9 months in advance until you know you can buy the property. Take care. It is not buying large land outside the villages. Which is not possible at all for foreigners.

Finalization of the process.

A final contract with your signed and last payment, unless it was already paid, can be made in the appearance of a lawyer in Hungary. And nothing is signed without prepayment.

On the reports, all you have to do is keep your passport with you. All excellent payments must be made on this day.

  • If everything goes smoothly, you will get the key to the house.
  • The signing of papers.
  • If you cannot attend, you must properly authorize us to sign on your behalf. In such cases when you are a non-EU citizen, it is possible to sign the contract at the embassy; however, they will only do so sensibly, and they will charge you for it.

Nowadays it can be even easier. To sign a purchase contract, it is easier to sign at the lawyer’s office in Hungary. As, unfortunately, is not always possible, Hungarian homes offer the possibility of signing a contract from afar. Of course, this is within all legal requirements but is easy for you. So you can sign at your house as if you were in Hungary.

Payment

In Hungary, cash is a very common method of payment, so paying a house in cash is not strange. Of course, you can transfer money to the lawyer’s account so that he can take care of paying the seller. Then you have to pay the cost of the bank.

After signing the contract we can help put utilities in your name, open a bank account, and if necessary, arrange your insurance with an insurance broker.

Please note that if the seller has not satisfactorily vacated the house and removed his property as agreed, there may be a stay of up to 500 Euros until the seller complies.

Be patient all property is 100% yours, land registries can be slow to register new owners (several months or more depending on the area). When it is ready, your registered ownership will come to us and it will be under our safeguard until you decide to take it.

All property sales interest taxation, which is based on the use of the property.

You can work below about your stamp duty/property tax:

  • 4% for the value of a house.
  • 4% for vacant building ground/plot.
  • A barn, secondary/side building, 4% for commercial property.
  • After signing the purchase contract, your property tax bill may take 6 to 12 months to arrive.

Non-EU citizens

Non-EU citizens are advised to check in with their officials to verify their status in Hungary before any travel/purchase.

If you do not have EU citizenship, we need to ask permission from local (province) authorities. This will cost some extra time and money. You can come to Hungary, select the house you want to buy, sign a contract and we begin the process. Will be written in the contract. The contract is valid only when permitted but keep in mind that it is not 100% guaranteed.

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